Saskatoon sees lowest quarterly drop for industrial vacancy in over a decade

While we saw quarter over quarter decreases throughout 2020, the drop in Saskatoon’s industrial vacancy for the last three months has exceeded my prediction for the entire current year.

The industrial sector has seen a net absorption of almost 150,000 square feet (SF).

In January, I forecasted we would be at 4.8 per cent by year end.

Our recently released Industrial Market Report recorded that rate had already dropped to 4.71 per cent. That represents over a 60-basis points reduction within one quarter.

My review of the market stats would indicate that is the largest quarterly drop we have seen in over 10 years.

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The little Blockbuster that could

The Last Blockbuster (2020)

“Do I rent missing renting from a physical store, no, absolutely not. I don’t think anybody does.”

86 minutes, streaming on Netflix  (2020) Trailer

The giant of all video rental franchises has truly fallen, with one remaining store in Bend, Oregon.

I’m sure most of us are surprised to hear there would even be one left in the wake of home streaming.

Thankfully, filmmakers have documented Blockbuster’s rise to fame and the eventual aftermath called The Last Blockbuster which ironically is airing through Netflix.

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3 tenant tips for renewals

Renewals in commercial leasing can be almost as important as securing a lease in the first place.

There is quite a bit of finesse to this process.

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Density can’t come at the expense of massive property devaluation

Cities are becoming increasingly aware of the need to densify.

The infrastructure costs of suburban sprawl are not recoverable.

No one is prepared to pay the real costs that are imposed upon most city services because of continued expansion of suburbia.

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How smart companies will address work-from-home

Smart companies will look beyond potential cost savings and base their decision on how to best invest in their most important asset…their employees.

I’m often asked what I believe will be the impact of the work from home transition on office occupancy.

I think it’s a matter of planning and investing where the money will be best served.

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Countdown to mandatory hotel quarantine

When an economy starts slipping people may still be going out to eat or shopping but the first luxury they cut is travelling.

And one of the industries that feels that impact most closely are hotels.

With a lot of news focussing on airlines, hotels appeared to be largely left out of federal aid until later stages of the pandemic.

With new national air travel quarantines coming into effect Feb. 22, will this act as a Band-Aid for struggling hotels?

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My predictions were wrong (but cut me a little slack!)

I promised you that I’d hold myself accountable in my Jan 2020 post and report back to you. 

So, how did I do? At that time, I predicted a decline in the overall Saskatoon industrial vacancy rate from 5.65 per cent per cent in 2019 to 4.8 per cent.

That’s after a significant 2 per cent decline in 2018 and a 0.9 per cent decline to 6.8 per cent in 2019.

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Avoid commercial real estate roadblocks

Have you ever come across a roadblock, turned to take an alternative route and found yourself up against another obstacle?

During Saskatoon’s construction season (basically anytime not designated Winter), it can be frustrating trying to find a route without some hurdle.

Likewise, commercial real estate buyers and sellers can potentially encounter endless roadblocks during the course of a transaction.

Unlike driving, though, you can anticipate these snags and potentially veer around them.

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More than meets the eye on retail site selections

My short commute route takes me past two nationally branded gas stations.

Both locations seem to be compatible in exposure and traffic count with front elevations that showcase up-to-date versions of their respective brands.

Why then is one site far more successful than the other?

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Ho, Ho, Holding out hope for next year

The past year has been a roller coaster for the commercial real estate industry.

Just when it looked like were gaining traction it seemed the world had another thing in store for us.

But I’m hopeful for 2021 and therefore I choose to focus on what’s in store for us.

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